“Our current investment picks include operating hotels and office buildings, as well as niche residential development opportunities,” he said.

The office and residential markets in Ho Chi Minh City are starting to demonstrate a better balance between supply and demand, according to the expert.

While this has yet to result in a significant increase in rental or residential prices, MacGregor expects those increases during the second half of this year and next year.

After long periods of due diligence and negotiations, several successful transactions were announced during the first quarter of this year, Savills said in its Q1 report.

For instance, Korea’s leading retailer, Lotte Mart, acquired Pico Plaza in HCMC as part of its expansion plan. Local developer Novaland Group announced plans in February to invest VND3.7 trillion (US$176.2 million) into three residential projects under construction in the city.